Reverse Logistics

Retailers can save money by making smooth returns

When products are returned to a merchant, the merchant can face the costly process of either re-purposing, reconditioning or recycling the goods.  This problem is referred to as reverse logistics and can cut into retailers profits by up to 20% every year.  

  • The rise of e-commerce has increased the need for an effective reverse logistics solution. E-commerce will account for 10% of total retail sales in 2018. Shoppers are more prone to returning items purchased online because they aren't sure exactly what they're getting.

  • There are four types of returns retailers face: commercial returns, product recalls, repairable returns, and end-of-life returns. Each requires a different reverse logistics cycle to handle it effectively.

  • Retailers can reclaim up to 32% of the total product cost by having an effective reverse logistics function. This includes by reselling the product, recycling it, re-manufacturing it, and more.